The Second-Highest Level after June’s
Bank Indonesia (BI) reported Dec’s Consumer Confidence Index (CCI) to stand at 126.4 higher than that of Nov’s 124.2 and to hit the second-highest level after June’s 126.4. The index puts 100 as the starting-point benchmark; the figures to fall below 100 indicate consumers’ pessimism and the figures to stood above 100 conversely indicate consumers’ optimism about the current and month-ahead economic backdrop. Dec’s upbeat CCI was attributable to the Spending on Durable Goods Index of 117.5, the second-highest position after Dec’ 2018 of 117.7 and indicating consumers’ inclining consumption. Of note, durable goods are secondary needs or tertiary needs, and higher spending on them showed consumers’ optimism about increases in their current incomes.
March’s Rising Prices
On the other side, BI also projects pressures of rising prices for the upcoming 3 months (March 2020). March’s Price Expectation Index (PEI) is likely to be higher than Feb’s PEI as consumers hope for adjustable administered prices. Besides, June’s prices are likely to soar along with the high prices after the Eid Mubarak celebration.
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